Throughout 2018, there were no changes in accounting policy with significant influence and impact to the Company’s financial statements.
BUSINESS CONTINUITY
Matters with Potentially Significant Impact to the Company’s Business Continuity
In 2018, the Company did not have any matters with potentially significant impact to its business continuity.
Asumsi yang Digunakan Manajemen dalam Melakukan Assessment Kelangsungan Usaha Perseroan
Asumsi yang mendasari assessment Manajemen dalam memutuskan tidak adanya hal-hal yang berpengaruh signifikan terhadap kelangsungan Perseroan adalah prospek industri baja nasional dan kekuatan strategis Perseroan sebagai salah satu pelopor di industri tersebut.
Prospek industri baja yang masih menjanjikan seiring dengan terus membaiknya kondisi perekonomian global maupun domestik.
Permintaan baja nasional juga diperkirakan akan terus meningkat seiring dengan pertumbuhan perekonomian domestik. Selain itu, kebijakan percepatan infrastruktur Pemerintah dan keberpihakan pada produk dalam negeri akan semakin mendorong pengembangan industri baja domestik termasuk Perseroan.
Dengan mempertimbangkan prospek tersebut dan selaras dengan Visi Perseroan untuk senantiasa tumbuh dan berkembang secara berkesinambungan, maka Perseroan telah merencanakan dan melaksanakan berbagai program termasuk di dalamnya berbagai investasi secara selektif dan penuh kehati-hatian.
Sesuai Rencana Jangka Panjang Perusahaan 2018 – 2022, terdapat 5 (lima) strategi utama Perseroan, meliputi: (1) Peningkatan Daya Saing Biaya, (2) Peningkatan Kapasitas Produksi, (3) Peningkatan Bisnis Non-Baja, (4) Peningkatan Produktivitas Tenaga Kerja, (5) Business Portfolio Streamlining.
PENINGKATAN DAYA SAING BIAYA
Dalam rangka meningkatkan daya saing biaya, Perseroan melaksanakan beberapa program strategis antara lain:
• Pembangunan Blast Furnace Complex yang bertujuan untuk menurunkan biaya produksi melalui penggunaan teknologi berbahan baku batubara yang kompetitif dan dapat menurunkan konsumsi energi listrik secara signifikan di steelmaking.
Teknologi ini juga diharapkan akan memungkinkan penggunaan bahan baku dan energi lokal.
• Penerapan operations excellence dalam rangka meningkatkan efektivitas dan efisiensi operasi.
• Penggantian peralatan yang telah obsolete, program rekondisi dan modernisasi fasilitas
PENINGKATAN KAPASITAS PRODUKSI
Dalam rangka memenuhi pasar baja domestik yang terus tumbuh serta mempertahankan posisi Perseroan sebagai pemasok baja dominan di pasar baja domestik maka Perseroan melakukan peningkatan kapasitas produksi baik yang dilakukan sendiri maupun yang dilakukan dengan mitra strategis dalam bentuk perusahaan patungan.
Assumptions of the Management in Assessing the Company’s Business Continuity
The assumption underlying the Management assessment in deciding the absence of significant influences on the Company’s sustainability is the prospect of the national steel industry and the Company’s strategic strength as one of the pioneers in the industry.
The outlook for the steel industry is still promising along with the continued improvement in global and domestic economic conditions. National steel demand is also expected to continue to increase along with the growth of the domestic economy. In addition, the government’s infrastructure acceleration policy and alignment with domestic products will further encourage the development of the domestic steel industry, including the Company.
By considering these prospects and aligning with the Company’s Vision to continually grow and develop sustainably, the Company has planned and implemented various programs including selective and prudent investments.
In accordance with the Company’s Long-Term Plan 2018-2022, there are 5 (five) main strategies of the Company, including: (1) Increasing Cost Competitiveness, (2) Increasing Production Capacity, (3) Increasing Non-Steel Business, (4) Increasing Labor Productivity, (5) Business Portfolio Streamlining.
INCREASING COST COMPETITIVENESS
In order to increase cost competitiveness, the Company implements several strategic programs including:
• Construction of the Blast Furnace Complex which aims to reduce production costs through the use of competitive coal- based technology which can significantly reduce electricity consumption in steelmaking. This technology is also expected to enable the use of local raw materials and energy.
• Implementation of operations excellence in order to improve the effectiveness and efficiency of operations.
• Replacement of obsolete equipment, reconditioning programs and modernization of facilities
INCREASING PRODUCTION CAPACITY
In order to meet the growing domestic steel market and maintain the Company’s position as the dominant steel supplier in the domestic steel market, the Company has increased its production capacity both by itself and with strategic partners in the form of joint ventures.
Saat ini, fasilitas yang sedang dibangun oleh Perseroan dalam rangka memenuhi peningkatan kebutuhan baja lembaran panas nasional adalah Pabrik Hot Strip Mill #2 dengan kapasitas 1,5 juta yang akan ditingkatkan menjadi 3 juta ton.
1. Cost Competitiveness
Market Development Market Penetration Product Development Horizontal Integration
3. Non-steel Business Development 2. Capacity Expansion
4. Productivity Enhancement
5. Business Portfolio Restructurization Divestiture Liquidation
1. Cost Competitiveness
3. Non-steel Business Development 2. Capacity
Expansion
4. Productivity Enhancement 5. Business
Portfolio Streamlining
Stabilization &
Selective Growth
PENINGKATAN BISNIS NON-BAJA
Perseroan merencanakan untuk meningkatkan bisnis non-baja sebagai bagian dari kegiatan bisnis untuk mendukung kegiatan bisnis utama Perseroan di bidang baja sekaligus untuk menangkap peluang bisnis dalam rangka mendukung kinerja Perseroan. Untuk keperluan ini Perseroan, antara lain: melakukan peningkatan kapasitas pasokan air industri yang dilaksanakan oleh PT KTI, membangun fasilitas pembangkit listrik yang dilaksanakan oleh PT KDL, melakukan pengembangan kawasan industri oleh PT KIEC, melakukan pengembangan teknologi informasi PT KS Group oleh PT KIT, dan meningkatkan kapasitas pelabuhan yang dilaksanakan oleh PT KBS.
PENINGKATAN PRODUKTIVITAS TENAGA KERJA Perseroan juga melakukan peningkatan produktivitas sumber daya manusia. Adapun strategi untuk pengembangan sumber daya manusia, antara lain:
• Enhancing Top Leaders Effectiveness, dengan strategi ini perusahaan berusaha meningkatkan kemampuan strategi bisnis para TOP Leaders serta menjalin cohesiveness dan sinergi para pimpinan Krakatau Steel & Group.
• Creating Excellent Leadership Performance, bertujuan meningkatkan kemampuan kepemimpinan Middle Management dalam menyelaraskan dan mengimplementasikan rencana bisnis serta meningkatkan kapabilitas organisasi untuk kinerja yang terbaik.
At present, the facility being built by the Company in order to meet the increasing demand for national hot rolled coil is the Hot Strip Mill Plant #2 with a capacity of 1.5 million which will be increased to 3 million tons.
INCREASING NON-STEEL BUSINESS
The Company plans to increase non-steel business as part of the business activities in order to support the main business activity of the Company in steel sector as well as to capture business opportunities and support the Company’s performance. For this purpose, the Company, among others: increased the capacity of industrial water supply as carried out by PT KTI, built power plant which as out by PT KDL, developed industrial region as carried out by PT KIEC, developed information technology of PT KS Group through PT KIT, and increased port capacity through PT KBS.
INCREASING LABOR PRODUCTIVITY
The Company also increased the human capital productivity.
Strategies to develop the human capital include:
• Enhancing Top Leaders Effectiveness, where the Company strives to improve the business strategy capability of the Top Leaders as well as to build cohesiveness and synergy among the leaders of Krakatau Steel & Group.
• Creating Excellent Leadership Performance aims to improve the leadership capabilities of the Middle Management in adjusting and implementing business plans as well as increasing the organization’s capability for the best performance.
• Assigning Talent People into Key Positions for Enhancing Company Performance aims to place the best employees (Talent People) in key positions as well as to assign Talent People in certain positions (Talent Mobility) so as to generate the best performance and improve the company performance.
• Designing Structure, System, and Innovation Culture to Build High Performance and High Engaged Workforce to build high performance and engagement through development of the organization design, revitalization of business process and innovative culture so as to increase the employee productivity and create a more competitive cost structure.
• Building Competency through effective learning and talent mobility aims to increase the employee competency and maintain the competency within the organization through transfer knowledge, learning program as well as Corporate University development.
BUSINESS PORTFOLIO STREAMLINING
The Company plans the optimization of its business by strengthening the business lines and subsidiaries. In addition, the Company will also execute divestment or liquidation on business lines or subsidiaries with poor performance. In terms of business development, the Company will also execute Initial Public Offering (IPO) for its subsidiaries.
• Assigning Talent People into Key Positions for Enhancing Company Performance, bertujuan menempatkan karyawan terbaik (Talent People) pada posisi kunci (key position) serta penugasan Talent People pada posisi tertentu (Talent Mobility) agar dapat menghasilkan kinerja terbaik dan meningkatkan kinerja perusahaan.
• Designing Structure, System, and Innovation Culture to Build High Performance and High Engaged Workforce untuk membangun kinerja dan keterlibatan yang tinggi melalui pengembangan desain organisasi, revitalisasi proses bisnis dan Budaya inovatif sehingga produktivitas karyawan meningkat dan struktur biaya dapat menjadi lebih kompetitif.
• Building Competency through effective learning and talent mobility bertujuan untuk meningkatkan kompetensi karyawan dan menjaga agar kompetensi tetap terjaga di dalam organisasi melalui transfer knowledge, learning program serta pengembangan Corporate University.
BUSINESS PORTFOLIO STREAMLINING
Perseroan merencanakan optimalisasi usahanya dengan memperkuat lini bisnis dan anak usahanya. Selain itu, Perseroan juga akan melaksanakan program divestasi maupun likuidasi bagi lini bisnis maupun anak usaha yang memiliki kinerja kurang baik.
Dalam hal pengembangan bisnis, Perseroan juga akan melakukan Initial Public Offering (IPO) untuk anak usahanya.